How to Sign a Check for Deposit or Cashing

Endorsing a check is a necessary step to make it legally transferable for deposit or cashing. This involves signing the back, which authorizes the financial institution to process the funds on your behalf. This action confirms you as the intended recipient and helps ensure the funds reach the correct destination.

Where and How to Sign

Signing a check for endorsement occurs on the back, usually within a designated area near the top edge. This section may be labeled “Endorse Here” or include a line for your signature. Use a pen with blue or black ink for legibility and permanence.

Your signature should match the payee’s name exactly as it appears on the front of the check. If your name is misspelled, endorse it by first writing the misspelled name, then your correct legal name underneath. This dual signature clarifies you are the intended payee despite the discrepancy.

Choosing Your Endorsement Type

Understanding the different types of endorsements allows you to choose the most appropriate method for your needs. The choice depends on whether you intend to cash the check, deposit it into your account, or transfer it to someone else.

Blank Endorsement

A blank endorsement is the simplest method, requiring only your signature on the back of the check. This type of endorsement carries the highest risk because it transforms the check into a “bearer instrument,” meaning anyone who possesses it can cash or deposit it. If a blank-endorsed check is lost or stolen, the funds could be accessed by an unauthorized individual, making it advisable to sign this way only immediately before depositing or cashing the check.

Restrictive Endorsement

A restrictive endorsement limits how the check can be used. This is typically done by writing “For Deposit Only” followed by your signature. You can also include your account number, such as “For Deposit Only to Account # [Your Account Number]”. This endorsement ensures the check can only be deposited into the specified account, preventing it from being cashed by anyone else, even if lost.

Special Endorsement

A special endorsement, also known as a full endorsement, allows you to transfer ownership of the check to another person or entity. To do this, you write “Pay to the Order of [New Payee Name]” followed by your signature. This directs the funds to the new payee, who then must endorse the check themselves to cash or deposit it. Some financial institutions may have specific requirements for this method.

Final Steps After Signing

After endorsing your check, the next step is to complete the transaction, either by depositing or cashing it. For deposits, you have several convenient options, including using an ATM, a mobile banking application, or visiting a bank teller in person.

Depositing a Check

Mobile deposits typically involve taking clear photos of both the front and back of the endorsed check using your bank’s app. ATM deposits require inserting your debit card and following on-screen prompts to place the check into a designated slot. For in-person deposits, you may need to fill out a deposit slip and present it along with the endorsed check and a valid identification to a teller.

Cashing a Check

If you intend to cash the check, you can do so at the issuing bank or your own bank where you hold an account. Cashing a check at your own bank is typically free, but banks may charge non-customers a fee. Various check-cashing services or retail stores also offer this service, often for a fee. After endorsement, it is important to act promptly to minimize any security risks, especially if you used a blank endorsement, and to keep the check secure until the funds are successfully processed.